01 Feb 2018 · 1 min read

Bitcoin Dips below USD 10,000, More Losses to Follow?

Bitcoin was under a lot of pressure during the past few hours, pushing the price below USD 10,000. Other major cryptocurrencies also declined, including bitcoin cash and ripple.

The best performing currency was Ethereum’s Ether as it remained in the green zone with minor gains of 0.6% to USD 1,108. The overall market sentiment is negative and digital assets may decline further in the near term.

Today in India, the Union Budget 2018 was announced. Many investors and traders were eyeing the budget to know about the Government’s stand on Bitcoin and cryptocurrencies.

The finance minister made it clear that the digital currencies are not Legal Tender and the Government will take all measures to eliminate the use of bitcoins in financing illegitimate activities. There was no mention of Bitcoin and cryptocurrencies Ban in India. However, this is not a very good sign for investors in India since the Government is not clarifying doubts whether trading is legal or not. There is also no clarity on tax structure for bitcoins and cryptocurrencies.

On the positive side, Suwon District Court in South Korea has recognized that bitcoin has economic value. Moreover, Samsung recently confirmed that they are working on developing hardware for cryptocurrency mining.

In Arizona, it seems like there are positive developments as lawmakers are pushing a proposal to allow residents in Arizona to pay their taxes in bitcoins.

In the altcoins arena, a document was released by the Grayscale Investments Company, which is one the biggest cryptocurrencies asset management firm. According to the document, Zcash token may perhaps rise to USD 60,000 in 2025.

Overall, the marketremains in the red, with BTC/USD trading below the most important support at USD 10,000. It is currently trading lower by 6.9% to USD 9,511. The next major support on the downside is at USD 9,200, followed by the USD 9,000 level.

ETH/USD is trading with a stable bias, but if the market continues to decline, Ether could trade below USD 1,080. Looking at the other digital currencies, bitcoin cash is down 8.5% to USD 1,370. The next major support for BCH/USD is at USD 1,300.

Other altcoins such as LTC/USD declined toward USD 151 and is currently under a lot of pressure. NEO/USD is down 10% to USD 130.